Growth in rent rates will be strong throughout the rest of this year, according to an Australian property expert.
Tim Lawless, director of property research at RP Data, wrote in a piece on smartcompany.com.au that there will not be many new properties entering the market this year, which will lead to greater competition for existing houses and apartments.
He went on to explain that, over the last two years, rent rates in Australian state capital cities have increased by 3.2 per cent, which is well below the average of seven per cent per year recorded during the last five years.
"It is anticipated that rental growth this year will be more in line with five-year average levels than with recent growth levels, recorded at a time when property values were typically increasing," Mr Lawless concluded.
Matusik Property Insights' 2011 Rental Market Survey recently found that the majority of people living in Australian property are willing to pay more rent for the property they currently live in.
Posted by Ravin Chatlani
